As we all know, PCB (printed circuit board) is an important electronic component, the support of electronic components, is the carrier of electrical connection of electronic components.The upstream raw materials of the PCB industry chain include copper clad plate, copper foil, glass fiber cloth, ink and other materials, and the downstream applications include communication equipment, consumer electronics, automotive electronics, etc. Since 2021, the market price of PCB upstream materials has increased to varying degrees.According to public data, the price of copper has doubled, and copper foil OEM costs, glass fiber cloth, epoxy resin and other materials have risen sharply.At present, the above material quotation is still in the high sideways.In addition, ink, semi-cured pieces, EMS raw materials and electronic components are also seriously out of stock, the price rise is also more obvious. Due to the impact of upstream raw material prices, copper clad plate production leading enterprises construction laminate, Wilbang, Jiaozuo Orewang and global glass fiber giant China boulder is equal to the price notice since late August 2021.
In general, the volume and price of copper clad plate rise led to the performance of related manufacturers to continue to grow.But for PCB manufacturers, the rise in raw material prices, seriously affect their gross margin level.
Orders have plunged by as much as 30% Since 2021, the price of upstream materials such as copper clad plate, copper foil and ink has continued to rise, bringing great pressure to PCB manufacturers.Not only is the direct raw material price increase, cartons and other auxiliary materials, freight, exchange rate has also become the driving force of rising costs.PCB manufacturers to the set of micro network bluntly, " in the first half of last year, the company was not easy to increase the customer price, but the net profit was later continue to rise raw material prices to swallow up.”
Compared with the rising raw material prices, they affect the net profit level.The decline of market demand has caused a big impact on PCB manufacturers. A person in charge of a PCB manufacturer said, " From the second half of 2020 to the first half of 2021, but due to the continuous rise of raw material prices, and downstream customers are unwilling to raise prices, many orders are afraid to accept.Since the second half of 2021, the order volume has decreased significantly, almost few orders in July and August, and now the market has picked up, but compared with the same period last year, the order volume of most PCB manufacturers decreased by 30%, and some small and medium-sized manufacturers even have no orders. At present, almost all PCB manufacturers are not operating at full capacity.” "The reason for the decline in orders is weak demand in the PCB industry, and the other is market saturation caused by homogeneous competition."The person said, due to the continuous falling PCB orders, coupled with rising raw material prices, costs continue to increase, leading to some small and medium-sized enterprises to stop production or shut down, and the operating performance of listed companies is also affected. At present, the price of upstream materials such as copper cladding plate, copper foil and ink is still high, leading to the rise in labor costs and material costs of PCB manufacturers.With the current overall demand of the PCB industry declining, the market competition will intensify, and some manufacturers may fall into a survival dilemma.
